Domestic Shoe Prices Rise, Foreign Prices Are Difficult For Customers To Accept.

"It's no longer produced. You can look for another house". "The factory is closed, sorry."

Such a reply made Li Ping's heart sink slightly.

Li Ping in

Frontier hotels have been engaged in foreign trade for more than ten years. In October 25th, when reporters saw him, he was busy registering new companies.

Li Ping told reporters that such a reply was obtained by buying customers some shoes with his customers in Wenzhou some time ago.

"Many manufacturers in the mainland have gone bankrupt, and the foreign trade business is hard to do now. I just want to register for a new business, but I will not do foreign trade for a while."

Li Ping's experience is not unique. Through his narration, we can get a glimpse of the true face of the foreign trade market today.

"I didn't order a pair of shoes and ran all over the original suppliers, all of them closed.

It is no exaggeration to say that most of the small and medium-sized shoe factories in Wenzhou are now closed down, and only some large factories are continuing to produce.

Li Ping said that several of his original suppliers in Wenzhou failed to survive the international financial crisis. After being hit by walls, he had to move to Chengdu and Chongqing to find new suppliers.

Li Ping said that he ordered four thousand pairs of shoes with Kazakhstan customers to order in Wenzhou this time.

I felt sad when I saw the manufacturer's door closed.

It can be said that this International

The impact on the shoe factories in the mainland is relatively large. Most of the factories that produce shoes for foreign trade merchants in Xinjiang are processing trade enterprises and rely on foreign orders.

Since the financial crisis, these manufacturers have shut down because they can not maintain production.

In the industry, "

This trend seems to be breaking up now that the trend of leadership and Wenzhou shoes dominate the market.

Industrial pfer and cost pressures are bothering Wenzhou shoe companies.

According to survey data, the number of shoe making enterprises in Wenzhou has shrunk, from more than 5000 in 2002 to more than 2000 today.

"Now manufacturers simply do not dare to pick up the goods, for example, foreign businessmen want to order ten thousand pairs of shoes, the price of each pair of shoes is 80 yuan, but after the goods are produced, the US dollar has fallen, and the manufacturers have lost it."

Li Ping said that the devaluation of the US dollar has a huge impact on international trade, because the decline of the exchange rate sometimes exceeds the profit margin of the manufacturers, so many manufacturers are reluctant to take orders.

After understanding, he found that another reason for the closure of factories was that they could not recruit workers.

Li Ping said that every factory has signs for recruiting workers, and also promised wages, working age wages, overtime pay, etc., but it can not attract many people.

"The manufacturers say that the wages of the workers have been very high now, or even doubled, which is beyond the scope of their support.

But no worker can guarantee that the production line can start. Some manufacturers keep several production lines to continue production, and some are directly closed.

This is only part of the reason for the collapse of factories, and the weakening of foreign purchasing power is also affecting the market.

Affected by the international financial crisis, foreign customers do not have much money at hand. For example, when choosing products, Central Asian customers generally choose cheap, good quality products.

"According to the normal accounting, the original 80 yuan a pair of shoes should now rise to 100 yuan, but foreign customers can not give this price, or insist on 80 yuan.

On the contrary, the production cost and labor cost of domestic products are rising sharply. The central point of the two party squeezing at home and abroad is concentrated on the manufacturers. They can neither raise the price of the products nor the wages of the workers, but they are also very contradictory.

Li Ping said.

Turn to Chengdu and look for new factories.

After finding no fruit in Wenzhou, Li Ping brought his client to Chengdu.

He heard that there are many small manufacturers in Chengdu, the price is not very high, and they can take orders.

Wenzhou is now left behind by large manufacturers, many of the original impulse, low price shoe enterprises have been pferred to Chengdu, Chongqing and other places, and some pfer to Vietnam, India and other countries.

"In Wenzhou, you have to say thousands of pairs of shoes, and the big factories simply ignore you.

Direct customers to take the spot, the price can be appropriate discount.

Li Ping said, only the order quantity exceeds ten thousand pairs, the manufacturer will consider.

The Central Asian customers are not very big orders, and they are not very expensive goods, so it is difficult to reach agreement with large manufacturers.

Compared with Wenzhou, Chengdu and Chongqing have lower labor wages. At the same time, the governments of these two places also support the landing of industrial enterprises, thus attracting many manufacturers to settle down.

Li Ping said that he is now ordering customers in Chengdu and Chongqing. In fact, many of Xinjiang's foreign trade merchants have moved here to find new factories.

However, manufacturers are also cautious when ordering orders.

Li Ping said that manufacturers now do not accept payment in the US dollar, they are required to pay in Renminbi, and they are paid at once.

When business was good, many manufacturers were able to produce orders for payment only by paying the deposit, and the payment could be paid at the end of the year.

This era is over.

"Although we have found a new manufacturer, it will be very profitable compared to before."

Li Ping said that the loss of customers and the decline of profits gave him the idea of giving up foreign trade.

He told reporters that he had five Central Asian shoe buyers, and now only one.

The other three moved to Vietnam and another to India.